WASHINGTON — Natural Resources Minister Joe Oliver landed here Monday to sell the Keystone XL only to find a capital awash in a rising political crisis over Syria that has flushed the contentious pipeline, along with all other issues, into the deep beyond.
Oliver met for an hour with Ernest Moniz, a nuclear physicist and environmentalist who became U.S energy secretary in May. Among the topics of discussion were Keystone XL, reducing the environmental footprint of non-conventional oil production such as the oilsands and sharing energy and environmental technological research, Oliver said.
“Secretary Moniz and I discussed opportunities to enhance our collaboration including the importance of modern energy infrastructure and reinforcing its safety, developing unconventional oil and gas resources responsibly, supporting responsible use of energy, demonstrating joint global leadership on energy and environmental issues,” he said.
Keystone XL, which will transport more than 800,000 barrels of oil a day primarily from the oilsands, remains key to the oilsands expansion strategy. This visit marked Oliver’s fifth official trip to sell the project.
While pipeline safety issues were discussed, the July 6 oil train explosion in Lac Megantic that killed 47 people was not.
Once again Oliver contended at a subsequent news conference that Canada is doing its best to reduce oilsands greenhouse gas emissions. While he emphasized that emissions per unit of production have decreased, he acknowledged that overall emissions continue to rise.
He again noted that Canada has aligned its overall reduction goals with those of the U.S. These include a 17-per-cent reduction of 2005 levels by 2020. Oliver said Canada is about halfway there. Oliver also said that Canada’s energy efficiency is among the best in the world.
He said oilsands companies are working to reduce to zero the emissions difference between oilsands and conventional cleaner oils.
Danielle Droitsch, director of the Natural Resources Defense Council’s Canada project, which has been campaigning against Keystone XL, noted that while U.S. emissions have fallen, Canada’s continue to rise.
“The Keystone XL tar sands pipeline will worsen carbon pollution,” she said in a statement. “The real climate solution is for the United States and Canada to co-operate on a clean energy partnership.”
Oliver refused to comment on a recent letter sent to U.S. President Barack Obama by Prime Minister Stephen Harper that purportedly offers greater greenhouse gas emission reductions should Obama approve the Keystone XL project.
Oliver said Canada must improve its GHG record so it can obtain society’s support — what he called a “social licence” — to continue to develop oilsands resources. He denied that any new commitments amount to “concessions” to the U.S.
With or without Keystone Canada has a strategic need to diversify energy export markets and will “continue to aggressively pursue the markets to assure that the Canadian energy industry can take advantage of the world’s fastest growing economies.”
Despite rising U.S. oil production, U.S. energy figures predict that the U.S. will still need to import 7.4 million barrels a day by 2035. “The Keystone pipeline will help meet that demand,” he said. “For America the Keystone XL represents a secure, stable source of energy.”
He said North America “can be energy independent within the next 20 years.” TransCanada Pipelines has been seeking approval for the $5.3-billion Keystone XL project since 2008.
The final approval rests with Obama. In 2011, with an upcoming election, Obama denied permission because part of the pipeline route traversed the ecologically sensitive Nebraska sand hills and it lacked state support. Obama suggested TransCanada reapply.
Oliver said he did not ask about a date when Obama will make the final decision. Reports indicate it will not be before 2014.
wmarsden@postmedia.com
